STOCKHOLM, Sweden, Sept. 04, 2003 (PRIMEZONE) -- Skanska (Other OTC:SKSBF) and Innisfree (the British PFI investment fund) have closed financing for the South Derby Acute Hospitals -- one of the largest assignments within the PFI-scheme.
The total contract for Skanska, including a 35-year facilities management (FM) contract, is valued at GBP 459 million, SEK 6.1 billion. The five year design and construction contract, valued at GBP 333 million, about SEK 4.4 billion, will be included in the order bookings for the third quarter of 2003.
The Skanska Innisfree consortium has been commissioned by the Southern Derbyshire Acute Hospitals NHS Trust. Skanska is participating as contractor, as service provider and part owner of The Skanska Innisfree consortium.
. Skanska UK has been awarded a design and construction project valued at GBP 333 million, about SEK 4.4 billion. Accordingly, this is Skanska's second largest hospital construction project in the UK. . On completion of construction Skanska will be responsible for the building and estates facilities management (the "hard" FM) assignment for 35 years. This additional contract is valued at GBP 3.6 million per annum, about SEK 48 million per annum. . Skanska BOT holds a 25-percent interest in the Skanska Innisfree consortium. Skanska BOT's investment amounts to approximately GBP 9 million, about SEK 119 million.
The loan financing is provided by a GBP 410 million (about SEK 5.5 billion) public issue bond, guaranteed by MBIA and underwritten by BNP Paribas.
The assignment involves the remodelling and redevelopment of the existing City Hospital site in Derby for a new 1,200-bed acute hospital and specialist care diagnostics center that will combine the existing services of both the existing City Hospital and the Derbyshire Royal Infirmary.
In total, the construction project involves over 128,000 square meters of new build with a further 30,000 square meters of refurbishment of existing facilities. The various buildings are scheduled to be completed and fully operational by 2008.
"It is rewarding to see that Skanska's combined forces as a contractor and FM services provider and an investor increases the Group's possibilities to secure large construction and service assignments such as this. We are already the largest contractor within the PFI sector and we are very proud to have won another prestigious contract that provides us with substantial expansion within construction and hard FM services," says David Fison, President of Skanska UK.
"This agreement is yet another confirmation on Skanska's leading position in the UK PFI hospital market," says Bert-Ove Johansson, President of Skanska BOT. "The Derby hospital is our third major hospital project as an investor within the PFI scheme in the UK and we see additional future investment opportunities in this sector as well."
The Skanska Innisfree consortium is currently involved in Walsgrave Hospital in Coventry - the largest PFI project in the UK valued at a total of GBP 484 million, SEK 6.5 billion. The scheme won the "Best Health Project Above GBP 45 million" category at the Publicprivatefinance Awards 2003. The project also took the star award of "Best Partnership" for providing innovation and delivering on public sector need.
Skanska UK holds a leading position within PFI, private finance initiative, starting with the UK's first such project in the 80s, the Dartford River Crossing. To date Skanska UK closed about GBP 2,5 billion, about SEK 33 billion, of PFI work.
This and earlier releases are available at www.skanska.com
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